1

Presentationto Carillion

The Equipment Rental Specialists

9th June 2010

The Equipment Rental Specialists

DRAFT #3 (24 Nov)

The Equipment Rental Specialist

Interim Results for the

period ended

30 September 2017

2Agenda

Strategy & Highlights

Operational Review

Financial Review

3

Strategy & Highlights

4Our aim is to create sustainable value

Resilient & proven model First class asset management

Specialist equipment rental Buy quality products at competitive

prices

Market leading positions in niche sectors Maintain assets through rental life cycles

Diverse markets in the UK and Overseas Use strong balance sheet and cash

generation for fleet growth and

acquisitions

Enhancing our offer Building on core attributes

Embrace change and innovate Retain and attract the best people

Take long term view Safe and sustainable business

Continue to exceed customer

expectations

Product reliability and operational

excellence

Provide value added services

5A positive trading period

● Excellent progress : 13% uplift in profits

● 12% revenue growth : mix of organic and acquisitions

● Return on average capital employed maintained at 16%

● Fleet investment increased to £32.5m, up 9%

●Zenith Survey Equipment and Jackson Mechanical Services

acquired in April 2017

● Day to day demand remained positive in most of our markets

● Post period end – major acquisition of Brandon Hire

6Maintained momentum

84.091.3

101.3105.1

121.7136.0

167.0

183.1

205.6

248.7

302.9

0

40

80

120

160

200

240

280

320

2013 2014 2015 2016 2017 H1 2018

208.7

11.0

12.8

16.217.2

18.7

21.2

29.8

17.4

20.1

26.8

34.9

39.1

0

4

8

12

16

20

24

28

32

36

40

44

2013 2014 2015 2016 2017 H1 2018

£m £m

Profit before tax and amortisationRevenue

* *

*N+1 Singer forecast

7

Operational Review

8Key markets

Infrastructure

Housebuilding Oil & Gas

Construction

9

Market segment

Revenue Growth

on

prior yearH1

2018

£m

H1

2017

£m

Infrastructure* 58.4 52.6 +11%

Construction 38.7 33.1 +17%

Housebuilding 16.1 13.7 +18%

Oil & Gas 10.9 10.3 +6%

Other ** 11.9 12.0 -

All Markets 136.0 121.7 +12%

*Utilities, Rail, Transmission and Facilities Management **Incl. Events and Defence

Market growth

o Infrastructure growth – water / transmission / comms – civil engineering customer base

o Construction growth – repair & maintenance / fit out – specialist tool hire growth

o Housebuild – sustained growth and stable demand

o Offshore Oil & Gas – some improvement but still slow and volatile

o Utilities and event growth in Australia / New Zealand

10Business performance - Group

H1 2018

£m

H1 2017

£m

Revenue 136.0 121.7 +12%

PBITA 22.4 20.1 +11%

Operating margin 16.5% 16.5%

o Another excellent UK divisional performance

o Group return on capital employed / margins stable and healthy

o Good organic growth, supplemented by maiden contributions from Zenith and JMS

o Stable UK and Asia Pacific markets. Offshore oil & gas remained weak

o Post period end acquisitions

11Business performance - UK

H1 2018

£m

H1 2017

£m

Revenue 120.3 108.1 +11%

PBITA 22.2 19.5 +14%

Margin 18.4% 18.0%

o Strong specialist tool hire performance

o Housebuilding sector has remained supportive

o Infrastructure steady, including Water (AMP 6), Transmission and Rail

12Business performance - International

H1 2018

£m

H1 2017

£m

Revenue 15.7 13.7 +15%

PBITA 0.3 0.6 -50%

Margin 1.7% 4.8%

o Profit and revenue growth ex Asia-Pacific within TR Group

o Weak trading in Airpac Bukom, marginally improving as year progresses

13Fleet investment

H1 2018 H1 2017

£m £m

UK 30.4 27.8

International 2.1 2.1

Total fleet capex 32.5 29.9

Disposal proceeds (8.7) (8.1)

Net expenditure 23.8 21.8

o 9% growth in net capital investment

o UK fleet growth in Hire Station, Torrent and UK Forks

o International capex mostly in TR Group

14Acquisitions

Post half year end

April 2017 JMS M&E

o ○mechanical and electrical specialist tool hire

o ○consideration £3.6m

April 2017 Zenith Survey Equipment

o ○survey and safety equipment rental and sales

o ○consideration £3.85m plus £2.3m debt

November 2017 Brandon Hire

o UK specialist tool hire

o consideration £41.6m plus £27.2m debt

November 2017 First National

o rough terrain fork lift truck rental

o consideration £0.9m plus £0.8m debt

15Brandon Hire

● Vp’s largest ever acquisition

● £80m turnover business

● Over 900 employees

● 143 locations throughout the UK

● Strong SME customer base

● Profitable, long established business

● Good business culture and service model fit with Vp

● Creates largest specialist tool hire offer in the UK

16Outlook

● Good momentum into H2 after an excellent first half

● Core UK markets stable – infrastructure, construction and housebuild

● Offshore Oil & Gas recovery slower than anticipated but improving backdrop

● Further positive market demand for TR Group

● Brandon Hire and First National acquisitions to bed into the Group

● We remain alert to changes in behaviour but markets currently supportive

●Opportunities across the whole of Vp give confidence of further progress in

the second half

17

Financial Review

18Financial highlights – PBTA up 13%

H1 2018 H1 2017 FY 2017

Revenue £136.0m £121.7m +12% £248.7m

EBITDA £41.1m £36.3m +13% £71.2m

Profit before tax and amortisation £21.2m £18.7m +13% £34.9m

Net margin 15.6% 15.4% 14.0%

ROACE 16.0% 15.6% 16.0%

19

H1 2018 H1 2017

Basic EPS (pre amortisation)44.2p 37.9p +17%

Profit for period before tax and amortisation£21.2m £18.7 m +13%

Weighted average number of shares39.3m 39.1m

Tax rate17.7% 20.7%

Earnings per share – 17% increase

20

Dividend per share (pence)

Interim dividend – 13% increaseH1 2018 H1 2017 FY 2017

Basic EPS (pre amortisation)44.2p 37.9p +17% 69.52p

Interim dividend per share6.80p 6.00p +13% 22.00p

Dividend cover6.5x 6.3x 3.2x

3.1 3.3 3.65.0 5.35 6.00 6.8

11.3512.25

14.0

16.5

18.85

22.00

0

5

10

15

20

25

2012 2013 2014 2015 2016 2017 H1 2018

Interim Dividend Full Year Dividend

21A

ve

rag

e C

ap

ita

l E

mp

loye

d -

£m

Strong ROACE

177

196

236

250

16.2%16.3%

16.0% 16.0%

10%

11%

12%

13%

14%

15%

16%

17%

18%

150

175

200

225

250

275

300

FY 15 FY 16 FY 2017 H1 2018

RO

AC

E %

22Robust balance sheet

H1 2018 FY 2017 Movement H1 2017

FY17 to H118

£m £m £m £m

Property, plant and equipment 211.8 195.6 16.2 188.4

Goodwill and intangibles 50.1 47.5 2.6 50.3

Net working capital 6.4 (1.9) 8.3 2.4

Other (4.7) (5.0) 0.3 (4.5)

Net debt (115.4) (98.9) (16.5) (107.5)

Net assets 148.2 137.3 10.9 129.1

23Healthy EBITDA, strong investment

Cash inflows

EBITDA : £41.1m

Cash outflows

Net capex £24.0mAcquisitions

£9.8m

Working

Capital

£10.5m

Tax /

Interest

£3.9m

Dividends

£6.3m

Other

£3.1m

Increase in net

debt £16.5m

24

17Bank facilities

Facilities

Post

Period End

£m

H1

2018

£m

FY

2017

£m

Committed 200 130 120

Overdraft 5 5 5

Total 205 135 125

Step up - 10 20

Actual Borrowing

H1

2018

£m

FY

2017

£m

Net debt 115 99

Headroom 20 26

25Covenants

8.04

12.28

14.2315.24

12.9915.19

Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 H1 18

Greater than 3 times

EBITA

Interest

Cover

1.10 1.20 1.241.45 1.39 1.50

2.00

0.0

0.5

1.0

1.5

2.0

2.5

3.0

FY 13 FY 14 FY 15 FY 16 FY 17 H1 18 Post periodend

Headroom for growth

Less than 2.5 timesNet Debt /

EBITDA

26

Any Questions?

27

Supplementary Schedules

28Group history – 1954 to date

Revenue:1970:

£2m

1980:

£14m

1990:

£70m

2000:

£55m

2010:

£129m

2013:

167m

2014:

£183m

2015:

206m

2016:

£209m

2017:

£249m

1954

1973

19801990

2017

1954Vibratory Roller & Plant Hire(Northern) Limited founded

1973Floated on main market

Vibroplant plc

1975First move into specialist plant

Airpac

1980Shoringdivision

established

1982US powered

access

business established

1990Groundforceacquired from

SGB

1996Cannon Tool Hire

acquired

Exit from USA

1997Rail:

Torrent

Trackside acquired

2000UK

Forks

divisioncreated

2001Hire Station formed through merger

of 5 regional tool businesses

2001renamed Vp

plc

2005TPA and ESS

acquired

2006Acquisition of

Bukom

Oilfield Services(Airpac Bukom

formed)2010

Geographical expansion:Global (Airpac Bukom)

Eire (Groundforce)Germany (TPA)

2015Acquisition of

Test & Measurement

2016Acquisition of Higher Access

and TR Pty (Australia)

2017Acquisition of

Brandon Hire

JMS M&E

Zenith Survey Equipment

2014Vp

celebrates

60 years

29

UK Division

International Division

Rough terrain material handling equipment and tracked access

platforms

Excavation support systems and specialist products

Tool hire, safety equipment, press fitting and low level access

Infrastructure equipment and services to the railway renewals and

maintenance sector

Portable roadway solutions

Equipment and service providers to the international oil and gas

exploration and development markets

Test & Measurement, communications and audio visual rental in

Australia, New Zealand and Malaysia.TR Group

30Cash flow

H1 2018 H1 2017 FY 2017

£m £m £m

Operating profits 21.6 19.2 33.2

Depreciation / Amortisation 19.5 17.1 38.0

EBITDA 41.1 36.3 71.2

Changes in working capital (10.5) (4.7) 1.9

Gross capex (32.6) (33.6) (64.6)

Asset disposal profit (3.2) (3.3) (5.8)

Proceeds from disposals 8.7 8.1 16.7

Acquisitions (8.2) (8.9) (10.0)

Interest (1.3) (1.4) (2.9)

Tax (2.7) (1.5) (4.5)

Dividends (6.3) (5.3) (7.6)

Other 0.1 (2.8) (3.3)

Debt / Finance Leases acquired (1.6) (4.3) (3.9)

Cash movement (change in net debt) (16.5) (21.4) (12.8)

31Effective rate of tax

H1 2018

%

H1 2017

%

Standard rate 19.0 20.0

Impact of tax rate change on deferred tax (1.8) -

Permanent disallowables 0.5 0.4

Chattels (0.9) (1.3)

Prior year adjustments - 0.4

Non qualifying depreciation 0.5 0.6

Overseas tax 0.4 0.6

Effective rate 17.7 20.7

32Net working capital

H1 2018

£m

FY 2017

£m

H1 2017

£m

Cashflow

movement

H1 2018

Inventories 6.3 5.2 5.4 (1.1)

Trade debtors 49.2 43.7 44.3 (5.5)

Prepayments and other debtors 7.9 6.0 7.1 (1.9)

Trade creditors (23.1) (21.5) (19.6) 1.6

Accruals, other creditors and tax (33.9) (35.3) (34.8) (1.4)

Net working capital 6.4 (1.9) 2.4 (8.3)

Capital creditors movement (2.3)

Other 0.1

Cashflow changes in debtors, creditors and stock (10.5)